Michael Saylor’s Strategy—formerly MicroStrategy—has renewed its aggressive Bitcoin acquisition. The company recently purchased 20,356 BTC for about $1.99 billion, paying an average of roughly $97,514 per Bitcoin. This buy was financed by a $2 billion private placement of zero-coupon convertible senior notes due in 2030, convertible at a 35% premium to the current share price. Under the deal, each $1,000 note can be converted into 2.3072 shares of the company’s Class A stock at $433.43 per share, and initial investors even had the option to buy an extra $300 million in notes until February 27, 2025.
Between February 18 and February 23, these proceeds were used to acquire the BTC, boosting the company’s total holdings to nearly 500,000 coins. In all, the firm has spent around $33.1 billion on Bitcoin, which works out to an average cost of about $66,357 per coin. Notably, during the same period, the company did not issue any new shares under its at-the-market equity program, choosing instead to lean on convertible debt. This move is in line with its “21/21 Plan,” which targets raising $42 billion over three years through a mix of debt and equity to fund further Bitcoin purchases; to date, it has raised $20 billion.
Despite the company’s bold Bitcoin strategy, its stock (NASDAQ: MSTR) remains highly volatile, with a beta of 3.26, and has delivered an annual return of approximately 335.95%. However, data from InvestingPro suggests that its financial health is weak, with short-term obligations outpacing liquid assets. Additionally, the company updated on its convertible notes due in 2027, noting conversion requests totaling around $857.4 million, which led to the issuance of more than 6 million shares, even as it reported a net loss of $670.8 million for Q4 2024.
